Investors have been reluctant to set forth a base case scenario, opting instead for careful portfolio hedging.
Philipp Lisibach, chief global strategist at Credit Suisse, told CNBC earlier this week that any confirmed de-escalation would give a boost to risk assets after a period of uncertainty and volatility.
Bhanu Baweja, chief strategist at UBS Investment Bank, argued earlier this week that outside of energy and Russian assets, markets had actually not priced in a great deal of risk. "Through that period what really happened was some parts of CEE FX got impacted, oil rose a little bit in the first iteration, came down in the second one, so not a lot happened in stocks, so really it became quite a local event," Baweja told CNBC on Tuesday.
"Russian assets themselves have moved a lot so they along with energy are pricing a lot of risk, which also means if the situation becomes better, then you really shouldn't see global equities seeing massive relief from that, you should see Russian assets going up and energy coming down."
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